Quote on the RBI MPC Announcement by Ms. Radhika Piplani, Chief Economist, Motilal Oswal Group
Below the Quote on the RBI MPC Announcement by Ms. Radhika Piplani, Chief Economist, Motilal Oswal Group
“The MPC’s decision was assertive — the committee delivered on both rate cuts and liquidity support. The Governor noted disinflationary pressures in the economy, which created room for a rate cut despite ongoing trade uncertainties and early signs of weakness in indicators such as the IIP and electricity demand. We anticipate an additional 25bp rate cut in Feb’25, based on our forecast of further downside surprises in inflation over the next 2–3 months.
A surprising element has been the durable liquidity injection of INR1.5t only in Dec’25. We anticipate additional open-market operations (OMOs) in the February policy, especially as pressure on the USDINR exchange rate is likely to prompt further dollar sales by the Central Bank, given the continued lack of relief on trade tariff issues”.
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